The Aggregate Demand Curve Is Negatively Sloped Because

question 69

Multiple Choice

The aggregate demand curve is negatively sloped because:

• A) higher prices cause a substitution of foreign goods for domestic goods.
• B) higher prices will erode the value of financial assets that have values fixed in dollar terms.
• C) higher prices will lead to an increase in interest rates.
• D) All of the above.

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Definitions:

Income Inequality

The unequal distribution of annual or lifetime income among individuals or households in an economy.

Time Dimension

The aspect of any study or phenomenon that pertains to its occurrence, development, or measurement over time.

Income Inequality

describes the uneven distribution of income and wealth across different participants in an economy, leading to economic disparity.